I finally finished my baby quilt after sewing machine drama and bearding from the wool-cotton batting after washing. But now it's dry I am so disappointed. The batting seems to have shrunk unevenly I. Places andmuch more than the fabric, it isn't rectangular anymore and just looks used. I don't even feel I can gift it to the intended owners anymore. Is this normal?

i've never used wool batting, but i do remember blocking wool sweaters after they were washed.

wet the quilt again. not soaking/dripping wet. then block it. you'll need to lay it out on a flat absorbent surface ... like a mattress (with towels under, an plastic under that, to protect the mattress.) gently pat and stretch into shape. stick pins into it all the way around so it will hold that shape while it dries.

I am just thinking out loud here, but I wonder if before you stretch it. Take the binding off. and then if it will stretch back out and lay flat, once it is dry before you put the binding back on, I am not sure how wide your border is, but put at least one or two rows of quilting right in the middle of the border to stablelize the edges before you put the binding back on.

I have noticed that many of the new batting pkgs say to pre shrink it... I have noticed the all cotton batting gives a wrinkly look. Wool has always shrunk...no dryer for it.Have it dry cleaned or wash with woolite and dry flat. The oldest quilts say to spread a sheet on the ground and dry them out of the sun.
I am lazy and I now use 80/20......the cotton to poly ratio. I do throw it in the dryer with a couple of wet towels to take out any creases and maybe shrink a bit.
I guess it comes down to reading the batting package, or the end of the bolt. Goggle washing batting and see what the newest info is. Things seem to change every few years..
Sorry about your beautiful quilt.
heres one article http://www.quilt.com/FAQS/BattingFAQ.html

The same thing happened to me! I had pre-washed the fabric, then tossed it in for a gentle wash and dried at low temp. It was Warm and Natural and shrunk unevenly. I have not had this happen before, and as you, was very upset with the quilt.